MEXICO CITY, Oct. 9 (Xinhua) -- Mexico's consumer price index rose 5.02 percent year on year in September, driven by surges in fuel and agriculture product prices, statistics released Tuesday showed.
Data by the National Institute of Statistics and Geography (Inegi) showed that the inflation rate was the highest since March, when inflation hit 5.04 percent.
It surpassed the inflation target of 2-4 percent set by the Central Bank of Mexico (Banxico).
In month-on-month terms, the National Consumer Price Index rose by 0.42 percent in September, according to Inegi.
In September, products with the most noteworthy increases were domestic gas, followed by low-octane gasoline.
The underlying year-on-year inflation, a key parameter for monetary policy decisions, was at 3.67.
During its Oct. 4 meeting, Banxico kept the benchmark interest rate at 7.75 percent.
Banxico said it expects obstacles for the inflation rate to go upward going forward in the midst of great uncertainty.
Mexican bank Ve por Mas said in a letter to its clients that the acceleration in prices was partly due to the use of a different basis of comparison, given that in September 2017, telephone and public transportation prices fell due to the earthquake that struck the country.
The accelerated inflation is also due to increases in energy and its implications for the basic basket.
"Due to this acceleration, we foresee that inflation will reflect a more moderate pace in October," economist Javier Saldana said.
"With this and an environment of greater trade certainty for Mexico, we believe Banxico will be able to maintain the interest rate at 7.75 percent until the end of the year," he said.
Nevertheless, this scenario is subject to the evolution of global energy prices and the pace of U.S. interest rate adjustment and its impacts elsewhere, he added.
